Not-for-Profit Valuation Overview

While the purposes of for-profit and not-for-profit organizations may differ, both types of organizations are valued based on similar principles. Whether converting your organization into a profit seeking firm, transferring assets across operating segments or jurisdictional boundaries, or a host of other scenarios, not-for-profit valuation services can provide the critical information you need to make management decisions and comply with legal and regulation requirements.

At Appraisal Economics, we are committed to guiding you through the process, both the general elements of not-for-profit valuation, as well as how we can provide these services in your particular circumstances. This section details not-for-profit valuation by examining three specific areas: the types of organizations that need valuation services, approaches to this process, and some of the common benefits of non-profit valuation services.

Types of Organizations Seeking Not-for-Profit Valuation
From institutions of higher learning to hospitals and charitable foundations, many organizations trust independent valuations for a range of applications. To qualify for favorable tax status, foundations and associations typically need to report the total value of their assets. Valuation is also important in determining the value of donated stock and other charitable contributions. (Learn more)

Approaches to Not-for-Profit Valuation
Depending on the goals and objectives of your organization, it’s important that your independent appraisal firm uses the right approach. Whether conducting a not-for-profit valuation based on the value of comparable entities in the market, or analyzing income or cash flow, there’s a wide range of methods to accurately determine fair market value. (Learn more)

Benefits of Not-for-Profit Valuation Services
Not-for-profit valuation has many purposes in today’s financial landscape. Organizations transitioning into for-profit status routinely need to report the value of their assets, as taxes may be levied or assets may need to be transferred to another not-for-profit. Securing tax exemptions and gaining preferred tax treatment are just a few of the benefits that not-for-profit valuation can provide to your organization. (Learn more)

Valuation for Non-Profit Organizations
As is the case with businesses and other for-profit companies, non-profit organizations need to know key financial information in a timely manner to facilitate management decisions and regulatory compliance. Appraisal Economics provides that information, while complying with Accounting Standards Codifications during each step of the valuation process. The professionals at Appraisal Economics have decades of experience appraising both for-profit and not-for-profit entities, large and small.